To make the Youth Allowance system fair for everyone including students, changes in Youth Allowance have been made by the Australian Government. Legislation was passed on 18 March 2010 and comes into effect for ABSTUDY, Austudy, plus Youth Allowance on 1 April 2010. The changes will benefit students who come from regional, rural or certain socio-economic backgrounds; plus students who have moved out of their homes.
The Government has targeted that by 2005, 40% of 25-34 year old students will have gained a bachelor degree. These changes in Youth Allowance are intended to support that target. The intention is that having more highly educated students benefits the job market within Australia.
Will more students be eligible?
From 1 July 2010 the threshold for the Parental Income Test increases to $44,165. This enables a greater number of students to be eligible for ABSTUDY and Youth Allowance support.
The cut-out for income requirements will increase to $108,000 for parents with two children aged 18 and 20 still living at home. If the children live elsewhere the cut-out increases to $142,000.
How much can be claimed?
The Student Assistance Estimator is a tool you can use to check how much you can claim.
Age of independence
The age of independence is now 22 years, which entitles more students to Youth Allowance. The changes will be phased in.
Thresholds
The Personal Income Test threshold will increase to $400 with the new Youth Allowance changes. Students can now earn up to $400 per fortnight to support themselves without having payments reduced.
Relocation Scholarships
Students who need to relocate will gain assistance from Relocation Scholarships. Those entitled to this grant receive $4,000 in their first study year, plus $1,000 each following year of study to assist with relocation costs.
Workforce participation independence
With the changes in Youth Allowance young people will be required to work full time each week for approximately 30 hours, for two years, to be able to claim workforce participation independence. You will not be disadvantaged if you are currently claiming this benefit when the changes come into effect.
For those who completed Year 12 in 2008, then took 2009 as a gap year, you will have the option of meeting the new criteria by 31 December 2012. To be eligible, you need to be living away from home, your parental income must be less than $150,000, and you will be required to have commenced at university during 2010.
Some aspects of the new workforce participation criteria will be applicable from 1 January 2011, for students needing to relocate to study, due to their rural location.
If you are in this situation, either visit Centrelink or contact them on 13 24 90 to check whether you are entitled to financial assistance from the new workforce participation criteria for independence standards.
